Swing Trading Earnings Bullish Momentum With Options in Artisan Partners Asset Management Inc



Swing Trading Earnings Bullish Momentum With Options in Artisan Partners Asset Management Inc

Artisan Partners Asset Management Inc (NYSE:APAM) : Swing Trading Earnings Bullish Momentum With Options

PREFACE

There is a pattern of bullish momentum in Artisan Partners Asset Management Inc (NYSE:APAM) stock just days before earnings, and we can track that by looking at swing returns in the option market.
This is a short-term swing trade, it won’t be a winner forever, and it can be easily derailed by a couple of down days in the market irrespective of Artisan Partners Asset Management Inc news, but for now it has shown a repeating success that has not only returned 305% annualized returns, but has also shown a win-rate of 55%.

IDEA


The idea is quite simple — trying to take advantage of a pattern in short-term bullishness just before earnings, and then getting out of the way so no actual earnings risk is taken.

That is, totally independent of whether the stocks have a pattern of beating earnings, in the 3-days before earnings, there is a small group that have risen sharply ahead of the actual news. It’s essentially bullish optimism in a very short-term window. There has been a way to use a short-term trade and generate profits from this tendency and it does not take earnings risk.

Option trading isn’t about luck — this four minute video will change your trading life forever: Option Trading and Truth

The Short-term Option Swing Trade Ahead of Earnings in Artisan Partners Asset Management Inc


We will examine the outcome of going long a monthly call option in Artisan Partners Asset Management Inc just three-days before earnings and selling the call one day before the actual news.

This is construct of the trade, noting that the short-term trade closes before earnings and therefore does not take a position on the earnings result.

Often times we look at option set-ups that are longer-term, and…

Read the full article at the Original Source..

Back to Top